[Federal Register Volume 64, Number 149 (Wednesday, August 4, 1999)]
[Proposed Rules]
[Pages 42310-42315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19989]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Regulations No. 4 and 16]
RIN 0960-AE96


Federal Old-Age, Survivors and Disability Insurance and 
Supplemental Security Income for the Aged, Blind, and Disabled; 
Determining Disability and Blindness; Clarification of ``Age'' as a 
Vocational Factor

AGENCY: Social Security Administration .

ACTION: Notice of proposed rulemaking .

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SUMMARY: We propose to revise the Social Security and Supplemental 
Security Income (SSI) disability regulations to clarify our 
consideration of ``age'' as a vocational factor at the last step of our 
sequential evaluation process for determining whether an individual is 
disabled under title II or title XVI of the Social Security Act (the 
Act). We also propose to amend our rules to better explain how we 
consider transferability of skills for individuals who are of 
``advanced age'' (age 55 or older) in deciding whether such

[[Page 42311]]

individuals can make an adjustment to other work.

DATES: To be sure that your comments are considered, we must receive 
them no later than October 4, 1999.

ADDRESSES: Comments should be submitted in writing to the Commissioner 
of Social Security, P.O. Box 17703, Baltimore, MD 21235-7703; sent by 
telefax to (410) 966-2830, sent by E-mail to [email protected]; or 
delivered to the Office of Process and Innovating Management, Social 
Security Administration, 2109 West Low Rise Building, 6401 Security 
Boulevard, Baltimore, MD 21235-6401, between 8 a.m. and 4:30 p.m. on 
regular business days. Comments may be inspected during these same 
hours by making arrangements with the contact person shown below.

FOR FURTHER INFORMATION CONTACT: Georgia E. Myers, Acting Regulations 
Officer, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235, 1-(410) 965-3632 or TTY 1-(800) 988-5906 for 
information about these rules. For information on eligibility or filing 
for benefits, call our national toll-free number, 1-800-772-1213 or TTY 
1-800-325-0778.

SUPPLEMENTARY INFORMATION: 

Background

    The Act provides, in title II, for the payment of disability 
benefits to persons insured under the Act. Title II also provides for 
the payment of child's insurance benefits for persons who become 
disabled before age 22, and for the payment of widow's and widower's 
insurance benefits for disabled widows, widowers, and surviving 
divorced spouses of insured persons. In addition, the Act provides, in 
title XVI, for SSI payments to persons who are aged, blind, or disabled 
and who have limited income and resources.
    For adults (including persons claiming child's insurance benefits 
based on disability under title II), ``disability'' is defined in the 
Act under both title II and title XVI as the ``inability to engage in 
any substantial gainful activity by reason of any medically 
determinable physical or mental impairment which can be expected to 
result in death or which has lasted or can be expected to last for a 
continuous period of not less than 12 months.'' Sections 223(d) and 
1614(a) of the Act also state that an individual ``shall be determined 
to be under a disability only if his physical or mental impairment or 
impairments are of such severity that he is not only unable to do his 
previous work but cannot, considering his age, education, and work 
experience, engage in any other kind of substantial gainful work which 
exists in the national economy, regardless of whether such work exists 
in the immediate area in which he lives, or whether a specific job 
vacancy exists for him, or whether he would be hired if he applied for 
work.''
    To implement the process for determining whether an individual is 
disabled based upon this statutory definition, our regulations at 
Secs. 404.1520 ad 416.920 provide for a five-step sequential evaluation 
process as follows:
    1. Is the individual engaging in substantial gainful activity? If 
the individual is working and the work is substantial gainful activity, 
we find that he or she is not disabled. Otherwise, we proceed to step 2 
of the sequence.
    2. Does the individual have an impairment or combination of 
impairments that is severe? If the individual does not have an 
impairment or combination of impairments that is severe, we find that 
he or she is not disabled. If the individual has an impairment or 
combination of impairments that is severe, we proceed to step 3 of the 
sequence.
    3. Does the individual's impairment(s) meet or equal the severity 
of an impairment listed in appendix 1 of subpart P of part 404 of our 
regulations? If so, and the duration requirement is met, we find that 
he or she is disabled. If not, we proceed to step 4 of the sequence.
    4. Does the individual's impairment(s) prevent him or her from 
doing his or her past relevant work, considering his or her residual 
functional capacity? If not, we find that he or she is not disabled. If 
so, we proceed to step 5 of the sequence.
    5. Does the individual's impairment(s) prevent him or her from 
performing other work that exists in the national economy, considering 
his or her residual functional capacity together with the ``vocational 
factors'' of age, education, and work experience? If so, and if the 
duration requirement is met, we find that the individual is disabled. 
If not, we find that he or she is not disabled.
    As discussed in Secs. 404.1569 and 416.969, at step 5 of the 
sequential evaluation process we used the medical-vocational rules that 
are set out in appendix 2 of subpart P of part 404. (By reference, 
Sec. 416.969 provides that appendix 2 is also applicable to adults 
claiming SSI payments based on disability.) In general, the rules in 
appendix 2 take administrative notice of the existence of numerous, 
unskilled occupations at exertional levels defined in the regulations, 
such as ``sedentary,'' ``light,'' and ``medium.'' Based upon a 
consideration of an individual's residual functional capacity, age, 
education, and work experience, the rules either direct a conclusion as 
to whether an individual is disabled at step 5 of the sequential 
evaluation process or provide a framework for making a decision at this 
step. Some rules in appendix 2 also direct a conclusion when an 
individual has ``skills'' acquired from previous skilled or semiskilled 
work that are ``transferable'' to other skilled or semiskilled work.
    Our rules regarding age and skills are set out in Secs. 404.1563, 
404.1568, 416.963, and 416.968. The rules and explanatory text of 
appendix 2 of subpart ) of part 404 also provide guidance for 
considering the vocational factors of age, education, and work 
experience that supplement the information on consideration of these 
vocational factors in Secs. 404.1560-404.1569a and 416.960-416.969a.
    The revisions we are proposing would clarify a number of our rules 
on the consideration of one of the vocational factors, ``age,'' in 
Secs. 404.1563 and 416.963. They would also clarify in new 
Secs. 404.1568(d)(4) and 416.969(d)(4) how we determine whether 
individuals who are of ``advanced age'' (i.e., age 55 or older), 
including individuals in a subcategory of advanced age called ``closely 
approaching retirement age'' (i.e., age 60-64), have skills that are 
transferable to other work.

Summary of Proposed Changes

Sections 404.1563 and 416.963  Your Age as a Vocational Factor

    We propose to revise the first sentence of paragraph (a) of 
Secs. 404.1563 and 416.963, ``General,'' to state more clearly that 
``age'' means chronological age. We propose to do this because there 
has been some misunderstanding about how we consider the vocational 
factor of ``age'' at step 5 of the sequential evaluation process. In 
current paragraph (a) we state, in part, that ``Age refers to how old 
you are (your chronological age) * * *.'' We use an individual's 
chronological age when we use the medical-vocational guidelines in 
appendix 2 to decide whether the individual can do other work. We do 
this because we built consideration of chronological age and its impact 
on an individual's ability to make an adjustment to other work into the 
medical-vocational guidelines in appendix 2, which also consider the 
person's education and work experience, as well as the person's

[[Page 42312]]

physical and mental functioning (i.e., residual functional capacity).
    In addition to defining ``age'' as how old you are (your 
chronological age), the first sentence of current paragraph (a) of 
Secs. 404.1563 and 416.963, explains that ``age'' refers to the extent 
to which age affects an individual's ability to adapt to a new work 
situation and ``to do work in competition with others.'' We propose to 
incorporate the principle intended in this statement into a new third 
sentence that clarifies our intent, as explained below.
    The second sentence of proposed Secs. 404.1563(a) and 416.963(a) 
would combine the second and third sentences of current paragraph (a). 
It would clarify our intent that, when we decide whether a person is 
disabled, we will not consider the person's age alone, but will 
consider his or her residual functional capacity, education, and work 
experience together with age.
    The proposed new third sentence of paragraph (a) of Secs. 404.1563 
and 416.963 explains that, when we consider the vocational factor of 
``age'' in determining an individual's ability to adjust to other work, 
we consider advancing age to be an increasingly limiting factor in the 
ability to make such an adjustment.
    The new third sentence we are proposing in paragraph (a) of 
Secs. 404.1563 and 416.963, incorporates the rule we intended in the 
first sentence of current Secs. 404.1563(a) and 416.963(a), indicating 
that we consider the effects of age on an individual's ability ``to do 
work in competition with others.'' This current provision, together 
with a provision regarding skills that are ``highly marketable'' in 
current Secs. 404.1563(d) and 416.963(d) that we also propose to 
replace, has been interpreted by some United States Courts of Appeals 
contrary to our intent, to support holdings that our regulations 
provide for consideration of an individual's employability. The circuit 
courts in these cases did not hold that their conclusions were required 
by the Act, which prohibits consideration of whether an individual 
would be hired if he or she applied for work. See sections 223(d)(2) 
and 1614(a)(3)(B) of the Act. Rather, the courts relied on the language 
in these current provisions of our regulations. These proposed changes 
in the regulations are, therefore, necessary to clarify our intent in 
this area.
    The fourth and fifth sentences of proposed Secs. 404.1563(a) and 
416.963(a) are substantially the same as the fourth and fifth sentences 
of the current rules. In the fourth sentence of the proposed rules, we 
propose to replace the current rules' reference to the ability to ``do 
a significant number of jobs which exist in the national economy'' with 
a reference to ``the ability to do substantial gainful activity'' to 
better reflect the definition of disability in the Act.
    We propose to move the last sentence of paragraph (a) of 
Secs. 404.1563 and 416.963 of the current rules to proposed 
Secs. 404.1563(b) and 416.963(b). This sentence explains that we will 
not apply the age categories mechanically in a borderline situation, 
and we believe it will fit more logically with the provisions in 
proposed new paragraph (b), which would explain more fully how we apply 
the age categories.
    We propose to add a new paragraph (b), entitled ``How we apply the 
age categories,'' to Secs. 404.1563 and 416.963. The new paragraph 
would explain that, if a person's age category changes during the 
period for which we are adjudicating a disability claim, we will use 
each of the age categories that is applicable to the person during the 
period for which we are deciding if the person is disabled. As already 
noted, we would also explain that in borderline age situations we will 
not apply the age categories mechanically. We also propose to explain 
that a ``borderline'' situation means that the individual is ``within a 
few days to a few months'' of reaching a higher age category, 
consistent with our current policy interpretation in Social Security 
Ruling 83-10, ``Titles II and XVI: Determining Capability To Do Other 
Work--The Medical-Vocational Rules of Appendix 2,'' Social Security 
Rulings (C.E. 1983, p. 174). As we explain in that Social Security 
Ruling, we are unable to provide ``fixed'' guidelines since such 
guidelines themselves would reflect a mechanical approach. (See Social 
Security Ruling 83-10, ibid., p. 182.)
    Because we propose to include a new paragraph (b) in Secs. 404.1563 
and 416.963, we would redesignate the remaining paragraphs, i.e., 
current paragraphs (b) through (e), as paragraphs (c) through (f) in 
the proposed rules.
    Proposed paragraph (c) of Secs. 404.1563 and 416.963, ``Younger 
person,'' incorporates the rules for individuals who have not yet 
attained age 50 that are in current Secs. 404.1563(b) and 416.963(b). 
The reference to ``age 45'' in the second sentence of current 
Secs. 404.1563(b) and 416.963(b), in which we explain that in some 
circumstances ``we consider age 45 a handicap in adapting to a new work 
setting,'' is actually a reference to individuals who are age 45 
through 49, because the category ``younger person'' ends upon 
attainment of age 50. We propose to state this meaning plainly by 
changing ``age 45'' to ``age 45-49.'' We also propose to revise the 
second sentence to remove the word ``handicap,'' to make the language 
of paragraphs (c), (d), and (e) of the proposed rules consistent and to 
clarify our intent; i.e., to discuss the effects of age on the ability 
to make an adjustment to other work.
    Proposed paragraph (d) of Secs. 404.1563 and 416.963, ``Person 
closely approaching advanced age,'' incorporates the rule for 
individuals age 50 through 54 that is in current Secs. 404.1563(c) and 
416.963(c). We propose to add the word ``closely'' to the heading of 
this paragraph for consistency with the text of the paragraph. We 
propose to replace the phrase at the end of the sentence in the current 
rule, ``a significant number of jobs in the national economy,'' with 
the phrase, ``other work,'' for consistency of language among the 
provisions of proposed paragraphs (c), (d), and (e) of Secs. 404.1563 
and 416.963. This is not intended to be a change in the standard, only 
a change for consistency among the provisions of these sections of the 
regulations.
    Proposed paragraph (e) of Secs. 404.1563 and 416.963, ``Person of 
advanced age,'' incorporates the rules for individuals age 55 or older 
that are in the first sentence of current Secs. 404.1563(d) and 
416.963(d). As in the preceding paragraphs, we propose the replace the 
phrase, ``ability to do substantial gainful activity,'' in the first 
sentence of the current rules with the phrase ``ability to adjust to 
other work,'' so that paragraphs (c), (d), and (e) of Secs. 404.1563 
and 416.963 will contain consistent language.
    We propose to revise the provisions that are in the second and 
third sentences of current Secs. 404.1563(d) and 416.963(d) and to move 
these provisions to proposed new Secs. 404.1568(d)(4) and 
416.968(d)(4). We explain these proposed changes below, under the 
explanation of proposed Secs. 404.1568(d)(4) and 416.968(d)(4). We 
propose to include in Secs. 404.1563(e) and 416.963(e) an appropriate 
cross-reference to proposed Sec. 404.1568(d) or Sec. 416.968(d) to make 
it easier to find the provisions in their new location.

Sections 404.1568 and 416.968  Skill Requirements

    We are proposing to add new Secs. 404.1568(d)(4) and 416.968(d)(4), 
``Transferability of skills for individuals of advanced age,'' to our 
regulations addressing skills and their transferability. The proposed 
new paragraph would incorporate and clarify the provisions in the 
second and third

[[Page 42313]]

sentences of current Secs. 404.1563(d) and 416.963(d). In the current 
regulations, these sentences provide rules regarding skills and their 
transferability for individuals of ``advanced age'' (i.e., age 55 or 
older) who have the residual functional capacity for no more than 
``sedentary'' work, and for individuals who are ``closely approaching 
retirement age'' (i.e., age 60-64) who have the residual functional 
capacity for no more than ``light'' work. We believe that they more 
logically belong in the sections of our regulations that discuss our 
rules regarding skills and their transferability; i.e., Secs. 404.1568 
and 416.968. We are also proposing to revise these provisions to 
clarify our intent, to make their language consistent with current 
provisions in our regulations, and to be consistent with other 
provisions in these proposed rules.
    The second sentence of current Secs. 404.1563(d) and 416.963(d) 
states that if a person of advanced age has a severe impairment(s) and 
cannot do medium work (i.e., the person is limited to light or 
sedentary work), the person ``may'' not be able to work unless he or 
she has transferable skills. In fact, under our current rules, we will 
find that such a person cannot make an adjustment to other work (i.e., 
is disabled) unless he or she has skills that can be transferred to 
other jobs the person can do despite his or her impairment(s). We 
propose to modify the provision to make this clear.
    We are proposing to incorporate in proposed new 
Secs. 404.1568(d)(4) and 416.968(d)(4) provisions from Secs. 201.00(f) 
and 202.00(f) of appendix 2 to subpart P of part 404 of our 
regulations, the Medical-Vocational Guildelines, to clarify our 
original intent regarding the last sentence of current 
Secs. 404.1563(d) and 416.963(d) and for consistency in our rules. The 
proposed revisions explain that, for an individual of advanced age 
(i.e., age 55 or older) whose residual functional capacity permits him 
or her to do no more than sedentary work, we will find that such 
individual's skills are transferable to skilled or semiskilled 
sedentary work only if the sedentary work is so similar to the 
individual's previous work that the individual would need to make 
``very little, if any, vocational adjustment in terms of tools, work 
processes, work settings, or the industry.'' In addition, we propose to 
include in proposed new Secs. 404.1568(d)(4) and 416.986(d)(4) a 
provision to clarify how we consider the transferability of skills for 
a person who is of advanced age but has not attained age 60 (i.e., a 
person age 55-59) and who has a severe impairment(s) that limits him or 
her to no more than light work. We explain that for such a person we 
will apply the rules in paragraphs (d)(1) through (d)(3) of current 
Secs. 404.1568 and 416.968 to determine if the person has skills that 
are transferable to skilled or semiskilled light work. The revisions 
also explain that, for an individual of advanced age who is ``closely 
approaching retirement age'' (i.e., age 60-64) and whose residual 
functional capacity permits him or her to do no more than light work, 
we will find that such individual's skills are transferable to skilled 
or semiskilled light work only if the light work is so similar to the 
individual's previous work that the individual would need to make 
``very little, if any, vocational adjustment in terms of tools, work 
processes, work settings, or the industry.''
    In making these revisions, we would replace the statement in 
current Secs. 404.1563(d) and 416.963(d), ``unless you have skills 
which are highly marketable,'' with the foregoing language taken from 
Secs. 201.00(f) and 202.00(f) of appendix 2. This will clarify our 
original intent that the provisions of current Secs. 404.1563(d) and 
416.963(d) are consistent with, and must be read in the context of, the 
provisions of Secs. 201.00(f) and 202.00(f) or appendix 2.
    There is no reference to ``highly marketable'' skills in the Act, 
which prohibits consideration of whether an individual would be hired 
if he or she applied for work. (See sections 223(d)(2) and 
1614(a)(3)(B) of the Act.) The phrase was one of the additions we made 
to the regulations under the ``common sense'' redodification in 1980. 
(See 45 FR 55566, August 20, 1980.) When we issued those regulations, 
we did not intent to introduce the term as a statement of a new rule or 
as a change in existing rules. We intended only to contribute to public 
understanding of the provisions regarding transferability of skills for 
older workers in the Medical-Vocational Guidelines in appendix 2. (The 
language in appendix 2 was not changed by the ``common sense'' 
redocification in 1980.) However, by using different language in 
current Secs. 404.1563(d) and 416.963(d) from that in appendix 2, we 
have inadvertently given the mistaken impression that we meant to 
establish a separate criterion for these individuals beyond what we 
already provide in appendix 2. That was not our intent. (See, e.g., 
Social Security Ruling 82-41, ``Titles II and XVI: Work Skills and 
Their Transferability as Intended by the Expanded Vocational Factors 
Regulations Effective February 26, 1979,'' Social Security Rulings 
(C.E. 1982, pp. 196, 202); Final Rules for Adjudicating Disability 
Claims in Which Vocational Factors Must Be Considered, 43 FR 55349, 
55353-55354 (November 28, 1978).)

Electronic Version

    The electronic file of this document is available on the date of 
publication in the Federal Register on the Internet site for the 
Government Printing Office, http://www.access.gpo.gov/su__docs/aces/
aces140.html. It is also available on the Internet site for SSA (i.e., 
SSA Online): http://www.ssa.gov/.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these proposed rules do not meet the criteria for a 
significant regulatory action under Executive Order (E.O.) 12866. Thus, 
they were not subject to OMB review. We have also determined that these 
proposed rules meet the plain language requirement of E.O. 12866 and 
the President's memorandum of June 1, 1998.

Clarity Of These Proposed Rules

    Executive Order 12866 and the President's memorandum of June 1, 
1998, require each agency to write all rules in plain language. In 
addition to your substantive comments on these proposed rules, we 
invite your comments on how to make these proposed rules easier to 
understand. For example:
     Have we organized the material to suit your needs?
     Are the requirements in the rules clearly stated?
     Do the rules contain technical language or jargon that 
isn't clear?
     Woule a different format (grouping and order of sections, 
use of headings, paragraphing) make the rules easier to understand?
     Would more (but shorter) sections be better?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     What else could we do to make the rules easier to 
understand?

Regulatory Flexibility Act

    We certify that these regulations, if promulgated, will not have a 
significant economic impact on a substantial number of small entities 
because they affect only individuals. Therefore, a regulatory 
flexibility analysis as provided in the Regulatory Flexibility Act, as 
amended, is not required.

Paperwork Reduction Act

    These regulations impose no additional reporting or recordkeeping 
requirements subject to OMB clearance.


[[Page 42314]]


(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social 
Security-Disability Insurance; 96.002 Social Security--Retirement 
Insurance; 96.004, Social Security--Survivors Insurance; 96.006, 
Supplemental Security Income)

List of Subjects

20 CFR Part 404

    Administrative practice and procedure, Blind, Disability benefits, 
Old-Age, Survivors and Disability Insurance, Reporting and 
recordkeeping requirements, Social Security.

20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Reporting and recordkeeping 
requirements, Supplemental Security Income (SSI).

    Dated: July 23, 1999.
Kenneth S. Apfel,
Commissioner of Social Security.

    For the reasons set out in the preamble, we propose to amend 
subpart P of part 404 and subpart I of part 416 of 20 CFR chapter III 
as set forth below:

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
(1950--  )

Subpart P--[Amended]

    1. The authority citation for subpart P of part 404 continues to 
read as follows:

    Authority: Secs. 202, 205(a), (b), and (d)-(h), 216(i), 221(a) 
and (i), 222(c), 223, 225, and 702(a)(5) of the Social Security Act 
(42 U.S.C. 402, 405(a), (b), and (d)-(h), 416(i), 421(a) and (i), 
422(c), 423, 425, and 902(a)(5)); sec. 211(b), Pub. L. 104-193, 110 
Stat. 2105, 2189.

    2. Section 404.1563 is amended by revising paragraph (a), 
redesignating paragraphs (b) through (e) as paragraphs (c) through (f), 
adding a new paragraph (b), and revising redesignated paragraphs (c), 
(d) and (e) to read as follows:


Sec. 404.1563  Your age as a vocational factor.

    (a) General. ``Age'' means your chronological age. When we decide 
whether you are disabled under Sec. 404.1520(f)(1), we will consider 
your chronological age in combination with your residual functional 
capacity, education, and work experience; we will not consider your 
ability to adjust to other work on the basis of your age alone. In 
determining the extent to which age affects a person's ability to 
adjust to other work, we consider advancing age to be an increasingly 
limiting factor in the person's ability to make such an adjustment, as 
we explain in paragraphs (c) through (e) of this section. If you are 
unemployed because of your age, but you still have the ability to do 
substantial gainful activity, we will find that you are not disabled. 
In paragraphs (b) through (e) of this section and in appendix 2, we 
explain in more detail how we consider your age as a vocational factor.
    (b) How we apply the age categories. When we make a finding about 
your ability to do other work under Sec. 404.1520(f)(1), we will use 
the age categories in paragraphs (c) through (e) of this section. We 
will use each of the age categories that applies to you during the 
period for which we must determine if you are disabled. We will not 
apply the age categories mechanically in a borderline situation. If you 
are within a few days to a few months of reaching an older age 
category, and using the older age category could result in a 
determination or decision that you are disabled, we will consider 
whether to use the older age category after evaluating the overall 
impact of all of your vocational factors.
    (c) Younger person. If you are a younger person (under age 50), we 
generally do not consider that your age will seriously affect your 
ability to adjust to other work. However, in some circumstances, we 
consider that persons age 45-49 are more limited in their ability to 
adjust to other work than persons who have not attained age 45. See 
Rule 201.17 in appendix 2.
    (d) Person closely approaching advanced age. If you are closely 
approaching advanced age (age 50-54), we will consider that your age 
along with a severe impairment(s) and limited work experience may 
seriously affect your ability to adjust to other work.
    (e) Person of advanced age. We consider that at advanced age (age 
55 or older) chronological age significantly affects a person's ability 
to adjust to other work. We have special rules for persons of advanced 
age and for persons in this category who are closely approaching 
retirement age (age 60-64). See Sec. 404.1568(d)(4).
* * * * *
    3. Section 404.1568 is amended by adding a new paragraph (d)(4) to 
read as follows:


Sec. 404.1568  Skill requirements.

* * * * *
    (d) Skills that can be used in other work (transferability) * * *.
* * * * *
    (4) Transferability of skills for individuals of advanced age. If 
you are of advanced age (age 55 or older), and you have a severe 
impairment(s) that limits you to sedentary or light work, we will find 
that you cannot make an adjustment to other work unless you have skills 
that you can use in (transfer to) other skilled or semiskilled work 
that you can do despite your impairment(s). We will decide if you have 
transferable skills as follows. If you are of advanced age and you have 
a severe impairment(s) that limits you to no more than sedentary work, 
we will find that you have skills that are transferable to skilled or 
semiskilled sedentary work only if the sedentary work is so similar to 
your previous work that you would need to make very little, if any, 
vocational adjustment in terms of tools, work processes, work settings, 
or the industry. (See Sec. 404.1567(a) and Sec. 201.00(f) of appendix 
2.) If you are of advanced age but have not attained age 60, and you 
have a severe impairment(s) that limits you to no more than light work, 
we will apply the rules in paragraphs (d)(1) through (d)(3) of this 
section to decide if you have skills that are transferable to skilled 
or semiskilled light work (see Sec. 404.1567(b)). If you are closely 
approaching retirement age (age 60-64) and you have a severe 
impairment(s) that limits you to no more than light work, we will find 
that you have skills that are transferable to skilled or semiskilled 
light work only if the light work is so similar to your previous work 
that you would need to make very little, if any, vocational adjustment 
in terms of tools, work processes, work settings, or the industry. (See 
Sec. 404.1567(b) and Sec. 202.00(f)) of appendix 2.)

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

Subpart I--[Amended]

    4. The authority citation for subpart I of part 416 continues to 
read as follows:

    Authority: Secs. 702(a)(5), 1611, 1614, 1619, 1631(a), (c), and 
(d)(1), and 1633 of the Social Security Act (42 U.S.C. 902(a)(5), 
1382, 1382c, 1382h, 1383(a), (c), and (d)(1), and 1383b); secs. 4(c) 
and 5, 6(c)-(e), 14(a) and 15, Pub. L. 98-460, 98 Stat. 1794, 1801, 
1802, and 1808 (42 U.S.C. 421 note, 423 note, 1382h note).

    5. Section 416.963 is amended by revising paragraph (a), 
redesignating paragraphs (b) through (e) as paragraphs (c) through (f), 
adding a new paragraph (b), and revising redesignated paragraphs (c), 
(d) and (e) to read as follows:


Sec. 416.963  Your age as a vocational factor.

    (a) General. ``Age'' means your chronological age. When we decide

[[Page 42315]]

whether you are disabled under Sec. 416.920(f)(1), we will consider 
your chronological age in combination with your residual functional 
capacity, education, and work experience; we will not consider your 
ability to adjust to other work on the basis of your age alone. In 
determining the extent to which age affects a person's ability to 
adjust to other work, we consider advancing age to be an increasingly 
limiting factor in the person's ability to make such an adjustment, as 
we explain in paragraphs (c) through (e) of this section. If you are 
unemployed because of your age, but you still have the ability to do 
substantial gainful activity, we will find that you are not disabled. 
In paragraphs (b) through (e) of this section and in appendix 2 of 
subpart P of part 404 of this chapter, we explain in more detail how we 
consider your age as a vocational factor.
    (b) How we apply the age categories. When we make a finding about 
your ability to do other work under Sec. 416.920(f)(1), we ill use the 
age categories in paragraphs (c) through (e) of this section. We will 
use each of the age categories that applies to you during the period 
for which we must determine if you are disabled. We will not apply the 
age categories mechanically in a borderline situation. If you are 
within a few days to a few months of reaching an older age category, 
and using the older age category could result in a determination or 
decision that you are disabled, we will consider whether to use the 
older age category after evaluation the overall impact of all of your 
vocational factors.
    (c) Younger person. If you are a younger person (under age 50), we 
generally do not consider that your age will seriously affect your 
ability to adjust to other work. However, in some circumstances, we 
consider that persons age 45-49 are more limited in their ability to 
adjust to other work than persons who have not attained age 45. See 
Rule 201.17 in appendix 2 of subpart P of part 404 of this chapter.
    (d) Person closely approaching advanced age. If you are closely 
approaching advanced age (age 50-54), we will consider that your age 
along with a severe impairment(s) and limited work experience may 
seriously affect your ability to adjust to other work.
    (e) Person of advanced age. We consider that at advanced age (age 
55 or older) chronological age significantly affects a person's ability 
to adjust to other work. We have special rules for persons of advanced 
age and for persons in this category who are closely approaching 
retirement age (age 60-64). See Sec. 16.968(d)(4).
* * * * *
    6. Section 416.96 is amended by adding a new paragraph (d)(4) to 
read as follows:


Sec. 416.968  Skill requirements.

* * * * *
    (d) Skills that can be used in other work (transferability) * * *.
* * * * *
    (4) Transferability of skills for individuals of advanced age.  If 
you are of advanced age (age 55 or older), and you have a severe 
impairment(s) that limits you to sedentary or light work, we will find 
that you cannot make an adjustment to other work unless you have skills 
that you can use in (transfer to) other skilled or semiskilled work 
that you can do despite your impairment(s). We will decide if you have 
transferable skills as follows. If you are of advanced age and you have 
a severe impairment(s) that limits you to no more than sedentary work, 
we will find that you have skills that are transferable to skilled or 
semiskilled sedentary work only if the sedentary work is so similar to 
your previous work that you would need to make very little, if any, 
vocational adjustment in terms of tools, work processes, work settings, 
or the industry. (See Sec. 416.967(a) and Sec. 201.00(f) of appendix 2 
of subpart P of part 404 of this chapter.) If you are of advanced age 
but have not attained age 60, and you have a severe impairment(s) that 
limits you to not more than light work, we will apply the rules in 
paragraphs (d)(1) through (d)(3) of this section to decide if you have 
skills that are transferable to skilled or semiskilled light work (see 
Sec. 416.967(b)). If you are closely approaching retirement age (age 
60-64) and you have a severe impairment(s) that limits you to no more 
than light work, we will find that you have skills that are 
transferable to skilled or semiskilled light work only if the light 
work is so similar to your previous work that you would need to make 
very little, if any, vocational adjustment in terms of tools, work 
processes, work settings, or the industry. (See Sec. 416.967(b) and 
Sec. 202.00(f) of appendix 2 of subpart P of part 404 of this chapter.)

[FR Doc. 99-19989 Filed 8-3-99; 8:45 am]
BILLING CODE 4190-29-M